Patricia's Paddle Boats is to be liquidated. All creditors, both secured and unsecured, are owed $2,100,000. Administrative costs of liquidation and wage payments are expected to be $750,000. A sale of assets is expected to bring $2,500,000 after taxes. Secured creditors have a mortgage lien for $1,900,000 on the factory which will be liquidated for $1,200,000 out of the sale proceeds. The corporate tax rate is 40%. How much and what percentage of their claim will the secured creditors receive, in total?

a. $900,000; 47.37%

b. $1,250,000; 65.79%

c. 1,627,777; 85.67%

d. $1,900,000; 100%

e. Not enough information to answer.